Membership Value

In 2016-2017:

Key measures supported by the Healthcare Association of Hawaii were approved during the Hawaii legislative session that ended this week, including the financial sustainability programs for the hospitals and the skilled nursing facilities.

In a difficult budget year during which tax revenues were coming in lower than expected, an inflationary adjustment for Medicaid patients needing nursing home care was maintained and approved as part of the state’s budget. In addition, discussion will continue via a task force on a measure to provide additional money to skilled nursing facilities caring for medically-complex patients.

A significant number of bills that HAH worked on for members were also favorably resolved.

HB 89 HD1 SD1 CD1: Hospital Sustainability Program
This legislation reauthorized the hospital sustainability program for two more years. This program helps facilities offset uncompensated care costs incurred by treating Medicaid recipients and uninsured individuals. However even after the benefits of the program, Hawaii’s hospitals – all of them nonprofits – were still left with millions in losses due to uncompensated care

HB 90 HD1 SD2: Nursing Facility Sustainability Program
This legislation extends the skilled nursing facility sustainability program for two more years. The funds generated through this program are used to cover payment shortfalls. However, even after the benefits of the program, long-term care facilities were still faced with an industry-wide financial shortfall in the millions of dollars.

HB91 HD1 SD1: Clean Claims
This legislation clarifies that acute care hospitals are covered under the State’s clean claims statute. This statute requires insurers to abide by prompt payment requirements under state law.

HCR 161 SD2 HD1: Working Group Related to Complex Patients
This establishes a task force examining establishment of an additional fee to nursing homes that accept medical complex Medicaid patients, such as those who are obese or who have behavioral health issues. The additional money will help pay for staff training, additional needed medications, or equipment purchases such as lifts that can safely handle bariatric patients.

State Budget: Inflationary Adjustment for Nursing Facilities
The state’s budget maintains the inflationary update approved last year for nursing homes caring for Medicaid patients, but does not increase the amount. The previous increase was the first since 2009, despite rising costs and greater administrative burdens. This legislation provides about $1.55 million in funding that will generate almost $1.8 million in additional federal matching dollars for Hawaii. This funding will help long-term facilities keep their beds and services open as the demand for their services rise.